TaxTMI 
TaxTMI 
TaxTMI 
Minutes of the 42nd meeting of the SEZ Board of Approval held on 16th September 2010 to consider proposals for setting up of Special Economic Zones
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.... 2,20,711 approx. crore has been made from SEZs. The export in the first quarter of financial year 2010-11, has been to the tune of 58,685.46 crores approx. registering a growth of 68% over the exports of corresponding period of the previous financial year. Item No. 42.1: Proposals for setting up of SEZs (A) Decisions for Formal Approvals: 1. Request for setting up of a sector specific Special Economic Zone for IT/ITES at Sulikere village, Kengari Hobli, Bangalore South Taluk, Bangalore, Karnataka by M/s. Poornimadevi Tech Park Private Limited, over an area of 13.11 hectares (Item No. 42.1 -Sl. No. i): The Board noted that the Developer was in possession of the land. The State Government has also recommended the proposal. Accordingly, the Board decided to grant formal approval to the proposal of M/s. Poornimadevi Tech Park Private Limited, for setting up of a sector specific Special Economic Zone for IT/ITES at Sulikere village, Kengari Hobli, Bangalore South Taluk, Bangalore, Karnataka, over an area of 13.11 hectares. 2. Request for setting up of a sector specific Special Economic Zone for Biotechnology at Chillamaturu and Gorantla Mandal, Ananthapur District, Andhra Pradesh ....
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.... Zone for Electronic Hardware and Software including ITES at Village Koorgalli, Itwala, Hobli, Mysore Taluk, Mysore District, Karnataka, over an area of 11.35 hectares. 6. Request for setting up of a sector specific Special Economic Zone for IT/ITES at Mouza - Tulasideipur, Chandaka, Bhubaneswar, Orissa by M/s. Suryo Infra Projects Private Limited, over an area of 10.526 hectares (Item No. 42.1 -Sl. No. vi): The Board noted that the Developer was in possession of the land. The State Government has also recommended the proposal. Accordingly, the Board decided to grant formal approval to the proposal of M/s. Suryo Infra Projects Private Limited, for setting up of a sector specific Special Economic Zone for IT/ITES at Mouza - Tulasideipur, Chandaka, Bhubaneswar, Orissa, over an area of 10.526 hectares. 7. Request for setting up of a sector specific Special Economic Zone for Information Technology (IT) at Sarjapur village & Billapur Village, Anekal Taluk, Bangalore, Karnataka by M/s. Infosys Technologies Limited, over an area of 24.446 hectares (Item No. 42.1 -Sl. No. vii): The Board noted that the Developer was in possession of the land. The State Government has also recommended t....
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....d it was noted that the issue was in respect of PIPVAV Shipyards and unique to them and is not a general issue. The representative of the Department of Revenue said that since it is a specific case, instead of amending the rules, the proposal can be considered on a standalone basis. The Board accordingly decided that the proposal can be considered by Department of Commerce in consultation with Department of Revenue. Item No.42.6: Requests for co-developers BoA sanctioned approvals to the co-developers subject to the condition that particular terms and conditions of lease agreement will not have any bearing on the treatment of the income by way of lease rentals/down payment/premium etc., for the purposes of assessment under the prevalent Income Tax Act and Rules. The Assessing Officer, will have the right to examine the taxability of these amounts under the Income Tax Act. This is applicable for all the cases for co-developers mentioned below:- (i) Request of M/s. MAS GMR Aerospace Engineering Company Limited for codeveloper in the sector specific SEZ for Aviation sector at Mamidipalli village, Hyerabad, Andhra Pradesh, being developed by M/s. GMR Hyderabad International Airport ....
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....orlds Window Infrastructure & Logistics Private Limited for co-developer for setting up of Free Trade Warehousing Zone (FTWZ) over an area of 25 acres, in the above mentioned SEZ. (vi) Request of M/s. Hind Terminals (Mundra) Private Limited for co-developer in the multi product SEZ at Mundra, Kutch, Gujarat, developed by M/s. Mundra Port and Special Economic Zone Limited It was noted that the issue has not been resolved so far and the request of the codeveloper has been considerably delayed. Since Department of Revenue, has reservations about this proposal, it is preferable that they also indicate a line of action. After discussions, it was decided that Department of Revenue would crystallise their views and bring it before the BoA during its next meeting. Accordingly, the consideration of the proposal was deferred Item No. 42.7: Request of M/s GMR Hyderabad International Airport Limited for authorized operations in the sector specific SEZ for aviation at Mamidipalli village, Hyderabad, Andhra Pradesh The BoA perused the proposal and after deliberations, the Board decided to approve the authorized operations, in the processing area, as given in the table:- S. No. Name of the ....
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....ure Limited for extension of the validity period of formal approval, granted for setting up of multi product SEZ at Jambusar, District Bharuch, Gujarat, beyond 30th September 2010. (ix) Request of M/s. Wipro Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Gopanapally and Vattingulapally villages, Serilingampally Mandal, Ranga Reddy District, Andhra Pradesh, beyond 24th June 2010. (x) Request of Electronic Corporation of Tamil Nadu Limited (ELCOT) for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Gangaikondan village, Tirunelveli Taluk, Tirunelveli District, Tamil Nadu, beyond 25th July 2010. (xi) Request of AMRL International Tech City Limited for extension of the validity period of formal approval, granted for setting up of multi product SEZ at Nanguneri Taluk, Tirunelveli District, Tamil Nadu, beyond 22nd May 2010. (xii) Request of Gujarat Industiral Development Corporation (GIDC) for extension of validity of the formal approval granted to its SPV viz Gujarat Growth Centres Development Corporation Limited (GGCDCL) for setting up of ....
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....and Information Technology Services (KBITS) for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Biotechnology at Electronics City Phase III, Bangalore, Karnataka, beyond 23rd August 2010. (viii) Request of M/s. Ansal SEZ Projects Limited for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Village Badshapur, Gurgaon, Haryana, beyond 5th November 2010. (ix) Request of M/s. Wockhardt Infrastructure Development Limited for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Pharmaceutical at MIDC Industrial Area, Shendre, Aurangabad, Maharashtra, beyond 2nd November 2010. Item No. 42.10: Requests for grant of second extension of in-principle approval. After deliberations, the Board decided to grant second extension of validity of inprinciple approval granted to M/s. Reliable Smartcity Limited for setting up of multi product SEZ at Pachma (Abdullah Pur) District, Sehore, Madhya Pradesh for a period one year beyond the expiry of the validity period (i.e. beyond 9th September 2010). Item No. 42....
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....approval granted to M/s. Mahindra Holidays & Resorts India Limited for co-developer in the sector specific SEZ for IT , Hardware and bioinformatics at Chennai developed by M/s. Mahindra World City Developers Limited The Board decided to approve the request of M/s. Mahindra Holidays & Resorts India Limited, a co-developer in the sector specific SEZ for IT, Hardware and Bioinformatics at Chennai developed by M/s. Mahindra World City Developers Limited for withdrawal of formal approval, subject to DC's certificate that the co-developer has refunded the tax/duty benefits, if any, which might have been availed under the SEZ Act/Rules. (iii) Withdrawal of formal approval granted to M/s. Glenmark Pharmaceuticals Limited for setting up of sector specific SEZ for Biotechnology at Shendra Five Star Industrial Area, Maharashtra, over an area of 11.89 hectares The Board decided to approve the request of M/s. Glenmark Pharmaceuticals Limited for setting up of sector specific SEZ for Biotechnology at Shendra Five Star Industrial Area, Maharashtra for withdrawal of formal approval, subject to DC's certificate that the developer has refunded the tax/duty benefits, if any, which might have been ....
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....ne Developers Private Limited for decrease in area in the notified sector specific SEZ for IT/ITES at Raman Nagar, K.R. Puram, Bangalore Karnataka After deliberations, the Board decided to approve the request of M/s. Bagmane Developers Private Limited for decreasing the area of the formally approved SEZ by 5.08 hectares from the formally approved area of 15.5 hectares thereby making the total area of the formally approved SEZ as 10.42 hectares, subject to contiguity of the SEZ being maintained and also DC's certificate that the developer has refunded all the tax/duty benefits including service tax exemption, which might have been availed under the SEZ Act/Rules, in respect of the area removed. Item No. 42.15: Request of M/s. Enfield Realtors Limited for restoration of formal approval granted for setting up of sector specific SEZ for Biotechnology at Kanksa, Pangarh, District Burdwan, West Bengal and for changing of the sector of the SEZ to Non-conventional Energy including Solar Energy Equipment/cell After deliberations, the Board restored the formal approval of the developer. The Board also approved the request of the developer for changing the sector of the formally approved S....
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.... come back with the request that this conditions may be waived as it interferes with their professional medical ethics, is not commercially viable and can cause serious operational ineffectiveness leading to loss of life. The Board decided to defer the consideration of the proposal for a more detailed study of the proposal and directed that the proposal be placed before it in its next meeting. Item No. 42.19: Request of M/s. Tata Consultancy Services Limited, a unit in Siruseri SEZ, Chennai for setting up disastrous recovery site in case of a disaster in SEZ location like terrorist attack and natural calamities After deliberations, the Board approved the request of M/s Tata Consultancy Services Limited for setting up disastrous recovery site in the unit of M/s TCS e-Serve International Limited, in DLF SEZ, Chennai. This will be subject to the operation being done through sitcom connections from their SEZ, there will be no specific network connection exclusively for the same. Item No. 42.20: Contiguity Relaxation (i) Request of M/s. Navi Mumbai SEZ Private Limited for relaxation of conditions of LoA regarding contiguity and multiple entry/exit gates BoA noted that in its meetin....
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....or specific SEZ for Petrochemicals and Petroleum sector at Baikampady, near Mangalore, Dakshina Kannada District, Karnataka, being developed by M/s. Mangalore SEZ Limited The decision was ratified by the Board. Item No. 42.24: Appeals before BoA (i) Appeal of M/s. Arshiya International Limited against the order of DC SEEPZ SEZ rejecting its request for Duty free Import/procurement of diesel for the authorized operations The representative of Department of Revenue indicated that there are revenue implications considering that diesel is a widely used fuel. Further, the instruction dated 12th March, 2010 issued by the Department of Commerce does not take into account the relevant provisions under Rule 27(1) of the SEZ Rules read with Rule 2 of the SEZ Rules which will make it clear that the developer cannot get duty free diesel. After discussions, it was decided that the matter would be examined on file before it is placed back before BoA for its consideration. Accordingly the appeal of the developer was deferred. (ii) Appeal of M/s. Sarvan Commercial Private Limited, a unit in Manikanchan Special Economic Zone, Kolkata against the order of DC Manikanchan SEZ rejecting its reques....
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....e Appellate Committee The board granted personal hearing to the appellant. It was noted that the appellant was given adequate opportunity by the appellate authority but due to reasons best known to them, the appellant did not dispose off the material and accordingly failed to utilize the opportunity given. In view of this position, the Board decided to reject the appeal. Decisions on the Supplementary Agenda Item No. 42.1: Proposals for setting up of SEZs (A) Decisions for Formal Approvals: 1. Request for setting up of a sector specific Special Economic Zone for IT/ITES at Kodathi village, Varthur Hobli, Sarjapur Road, Bangalore by M/s. Wipro Limited, over an area of 19.46 hectares (Item No. 42.1 -Sl. No. i): The Board noted that the Developer was in possession of the land. The State Government has also recommended the proposal. Accordingly, the Board decided to grant formal approval to the proposal of M/s. Wipro Limited, for setting up of a sector specific Special Economic Zone for IT/ITES at Kodathi village, Varthur Hobli, Sarjapur Road, Bangalore, over an area of 19.46 hectares. 2. Request for setting up of a sector specific Special Economic Zone for IT/ITES at Belagola I....
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.... Corporation Limited (MIDC) After deliberations, the Board decided to grant approval to the request of M/s. Flamingo Infra Developers Private Limited for co-developer for providing infrastructural facilities by undertaking all the default Authorized Operations over an area of 20.23 hectares (50 acres) in the above mentioned SEZ. Item No. 42.4: Request for de-notification (i) Request of M/s. JSL Limited for de-notification of the notified sector specific SEZ for Stainless Steel at Kalinga Nagar, Orissa After deliberations, the Board decided to approve the request of M/s. JSL Limited for de-notification of notified sector specific SEZ for Stainless Steel at Kalinga Nagar, Orissa, over an area of 142.115 hectares, subject to DC's certificate that the developer has refunded all the tax/duty benefits including service tax exemption, which might have been availed under the SEZ Act/Rules. Item No. 42.5: Requests for withdrawal of formal approval (i) Withdrawal of formal approval granted to Maharashtra Industrial Development Corporation Limited (MIDC) for setting up of sector specific SEZ for power generation at Bhadravati Industrial Area, District Chandrapur, Maharashtra The Board ....
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....e Board decided to grant first extension of validity of formal approval in respect of each of the following 6 (Six) developers for a period of one year beyond the expiry of the validity period: (i) Request of M/s. Mittal Infratech Private Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at village Sewah, GT Road, District Panipat, Haryana, beyond 14th October 2010. (ii) Request of M/s. AMRL International Tech City Limited for extension of the validity period of formal approval, granted for setting up of multi product SEZ at Nanguneri Taluk, Tirunelveli District, Tamil Nadu, beyond 22nd May 2010. (iii) Request of M/s. Karle Infra Projects for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Nagavara village, Bangalore North Taluk, Karnataka, beyond 18th June 2010. (iv) Request of M/s. Platinum Holdings Private Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Hardware and Software at Navallur village, Chengulpet Taluk and Semmencherry village, Tambaram Taluk, Kancheepuram Distri....
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....s. Bannari Techno Park Private Limited for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Kalapatty village, Coimbatore District, Tamil Nadu beyond 24th October 2010 Item No. 42.9: Request of M/s. Silkroad Sugars Private Limited, a unit in the sector specific SEZ for food processing at Kakinada, Andhra Pradesh being developed by M/s. Parry Infrastructure Company Private Limited, for waiver of import duty on incidental generation of electricity The Board noted that the customs tariff rate has been brought down from 16% advalorem to approximately 3% advalorem and the unit should be in a position to bear this tariff. Item No. 42.10: Appeal of M/s. NSL SEZ (Hyderabad) Private Limited against the decision of the BoA rejecting the request of the developer for waiver of the condition of exclusive use of residential apartments by SEZ employees The Board considered the proposal and desired further details from DC VSEZ. Accordingly, the consideration of the proposal was deferred. ************** Annexure - 1 List of Participants for the Meeting of the Board of Approval for Special Economic Zones held on 16th Sept....